Saudi’s economy sees hit in projected growth

RIYADH, July 24, 2017 – Saudi Arabia’s GDP growth is expected to falter this year due to oil production cuts, structural reforms and uncertainty in oil prices, according an IMF report released Monday.

The IMF reduced the oil-rich country’s annual GDP growth forecast to 0.1%, down from a prediction of 0.3% made in April. Annual growth of the non-oil industry is expected to reach 1.7%, contrasted with 0.2% actual growth in 2016. The rise is attributed to the government’s recent plans to reduce the Saudi economy’s dependence on oil.

The report also predicted that the country’s fiscal deficit will decrease from 17.2% of GDP in 2016 to 9.3% in 2017, falling to less than 1% by 2022.

If these predictions are met, Saudi Arabia’s economic growth in 2017 would be the worst the country has seen since 2009 when its oil revenues dropped.

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